PM SVANidhi Scheme: The Union Cabinet has sanctioned restructuring

What does it entail?

PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) is a micro-financing program aimed at urban street vendors.

It offers low-cost working capital loans to help recover livelihoods affected by COVID-19.

Inaugurated in

June 1, 2020, by the Ministry of Urban Development and Housing Affairs (MoHUA).

Goals and Intentions

Offer working capital loans to street vendors without requiring collateral.

Encourage electronic transactions and enhance access to financial services.

Assist vendors in restarting their businesses after the pandemic and connecting with the formal economy.

Promote credit responsibility by rewarding on-time payments.

Nodal Authority

Executed by the Ministry of Housing and Urban Affairs (MoHUA) in collaboration with State/UT governments, Urban Local Bodies, and financial institutions.

Main Characteristics (Original Structure)

First tranche: ₹10,000 unsecured loan.

Interest Subsidy: 7% annual subsidy for prompt repayment.

Digital Rewards: Up to ₹100 monthly cashback for online transactions.

Credit Connection: Increased loan amounts accessible upon timely repayment.

Intended Beneficiaries: Street vendors in official towns, encompassing those functioning via carts, stalls, and sidewalks.

Recent Reorganization (2025)

Prolonged Lending Duration: Now effective until 31 March 2030 (previously 31 Dec 2024).

Increased Loan Amounts:

1st installment: ₹15,000 (previously ₹10,000).

2nd installment: ₹25,000 (previously ₹20,000).

3rd installment: ₹50,000 (remains the same).

UPI-connected RuPay Credit Card: For merchants settling their second installment, offering immediate access to credit for both business and personal requirements.

Cashback Rewards: Merchants can receive up to ₹1,600 each year on online retail/wholesale transactions.

Broadened Scope: In addition to statutory towns, now encompasses census towns and peri-urban regions.

Beneficiary Scope: Seeks to assist 1.15 crore vendors, comprising 50 lakh newcomers.